The appellants purchased two condominiums as tax-sheltered investments.
The vendor failed to convey title, and the appellants obtained an unpaid judgment against the vendor.
The appellants applied to the Ontario New Home Warranty Program for compensation.
The Program and the Commercial Registration Appeal Tribunal denied compensation for business and investment costs, allowing only land and construction costs, and deducted tax savings.
On appeal, the Divisional Court held that the appellants were entitled to compensation for the entire transaction, including service contracts integral to the condominium purchase, but agreed that tax savings must be deducted from the total financial loss.
